Getting ready for your 2013 taxes may not be an easy task for you, if you have not been completely organized throughout your business year when it comes to keeping your financial records in order. You may be in need of some Toronto Bookkeeping Services that are going to make your tax obligations far more simple and accurate.
Years ago it used to be that the small business owner would keep all their bills and receipts stuffed in a file folder, and then at the end of the year their tax preparer would just sort through these to come up with the figures that were needed to complete the tax returns. That may work now for personal tax returns where there are just a few collections of receipts needed for some tax credits. It certainly will not work for any business no matter how small or simple. Your tax accountant must have your financial records in order, so he can prepare the statements necessary that must accompany your tax return.
This is applicable to businesses that are both incorporated and unincorporated. In fact, the CRA has set some stringent rules about bookkeeping practices. They insist that you keep your financial records in an organized manner to the point where you can accurately determine your tax obligations and any entitlements you may have. This can only be done by following the generally accepted accounting procedures. This is a format and structure that bookkeepers and accountants adhere to.
By utilizing Toronto bookkeeping services it means they will take all of your individual financial information and organize it into the proper categories. For example, you will have accounts receivable and accounts payable. Then these categories have to be broken down into sub categories.
You may be wondering why your business records have to be so detailed. Why is it not enough for the CRA to know that you spent a total amount on accounts payable in a year? This is because each
accounts payable is viewed by the CRA in a specific manner. For example, for some expenses you can claim the total amount, while for others you can only claim a portion.
As you can see just with these few examples proper record keeping is a necessity. We would be happy to assist you with our Toronto bookkeeping services, here at Toronto Accountant.
